What are the main implications of financial risk associated with the company?

Q: What is financial leverage and how does it affect a business's performance?

A: The company borrows money to acquire assets and do operations. The amount of debt a corporation has…

Q: How is it possible for a firm to grow itself out of business and how can this be guarded against as…

A: Finance managers are accounting experts concerned for a company or organization's financial…

Q: What are the options available to a company in the event of a financial failure?

A: Overspending and a more considerable degree of illiquid assets might lead to the firm's financial…

Q: Why does a Financial Manager need to choose which source of financing a company should use? What do…

A: The business finance sources which are available to businesses are working capital loans, retained…

Q: 1. How are the capital market line and security market line similar?  How are they different?

A: Note : As per the bartelby guidelines only first question will be answered.    Similarities in…

Q: What is the relationship between current liabilities and a company's operating cycle?

A: Liability: Liability is the obligation of the company to pay which comes from a past activity done…

Q: tha

A: A financial forecast gives businesses access to cohesive reports, allowing finance departments to…

Q: Distinguish between business and financial risk

A: Financial risk refers to the ability of a company to handle its debt and financial leverage, while…

Q: Why does business risk vary from industry to industry?

A: Business risk It is the probability of occurrence of an inadequate amount of loss because of…

Q: Explain the principle of increasing financial risk and why it is important when assessing the…

A: Financial risk refers the risk that the organization may not be able to repay its loan. This may…

Q: Why might an analyst be interested in examining the earnings persistence of a company?

A: Earnings persistence can be defined as the continuity and longevity of the potential earnings, which…

Q: What are the possible actions that a firm can take if it experiences a financial failure?

A: Financial failure of the firm could be resulted because of overspending, higher degree of illiquid…

Q: How can finance managers access and monitor the health and performance of a company?

A: This question explains about the finance managers access and monitor the health and performance of a…

Q: e balance sheet have in respect to evaluating the health of the firm?

A: Balance sheet of the firm shows the overall financial position of the company and show how much are…

Q: What is the net income for this firm?

A: Net Income is revenue excluding all expenses of the firm

Q: How can you estimate the business risk of a firm?

A: Beta is the systematic risk. As a company opts to make decision to the best of interest, it is…

Q: how a firm might use a hedging to reduce risk in its business? please include examples

A: Hedging is an important tool in finance. A firm or a company often makes use of hedging to reduce…

Q: What is business risk? What factors influence afirm’s business risk?

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: Why would managers misrepresent the financial results oftheir companies?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: Critically analyse a company capital structure and the factors that influencesit.

A: Introduction: Capital structure is nothing but the debt and securities that are included in the…

Q: Should companies preserve their financial flexibility in times of financial crises?

A: Definitions : Financial flexibility : In simple words, financial flexibility can be defined as the…

Q: Discuss three major financial risks that companies face today. Market, Liquidity, and Operational.

A: The three financial risk corporation faces today as follows: Liquidity risk: Liquidity risk is the…

Q: match the correct description with the correct term. Descriptions Terms The level and nature of risk…

A: Descriptions Terms The level and nature of risk attributable to a firm’s activities and…

Q: Is it realistic to believe that an optimal capital structure exists or might be achieved by a…

A: An optimal capital structure refers to the best mix of debt and equity used by a Company to finance…

Q: What is the difference between a financial crisis and a company crisis. Explain.

A: Solution                        Difference between a Financial Crisis and a Company CrisisThe…

Q: What do you mean by financial standpoint? (Corporate Finance)

A: The term finance has a broader scope which is used by the company in terms of money or capital. In…

Q: What is causing the volatility for this company? Is anything in this statement unusual or concerning…

A: when analysing the company financials it is important to consider the every variables as it affect…

Q: What are the implications of excess liquidity for the stability of the financial sector?

A: Financial system is defined as the range of the stability, when it used to dissipate the financial…

Q: Discuss how financial risk management enables a firm to increase its value

A: The process of discovering, assessing, and controlling threats to an organization's capital and…

Q: What is the relationship between financial decision-making and risk and return? Would all financial…

A: Almost every financial decision involves a risk-reward trade-off of some type. The higher the…

Q: Balance Sheet vs. Income Statement: Which financial statement is more significant to an outside…

A: Financial Statements: An IntroductionIt is a summary of a company's financial transactions to…

Q: What are the key variables that influence a company’s investment in receivables?

A: The variables that influence the company investment in receivables are as follows, The level of…

Q: What is the relationship of business risk, financial risk, and stand-alone risk? How to calculate…

A: Risk refers to the proportion of uncertainty arising as a potential financial loss inherent while…

Q: Discuss the benefits of managing financial risks in a company?

A: Risk is the factor which arises from the uncertain future factors. It is always preferable to manage…

Q: What is the capital structure of the company?

A: Here Is The Answer:

Q: Current liabilities affect a company’s liquidity. What is liquidity, and how do we evaluate it?

A: Current liabilities are the liabilities that is  paid within a year by the company.

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.